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Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs

F1 cancels season-opening Australian Grand Prix over coronavirus

Workers pack up in pit lane after the cancellation of the Australian Formula One Grand Prix in Melbourne, Friday. / AP   MELBOURNE, Australia — As thousands of fans queued to get into the Australian Grand Prix, seemingly unperturbed by the coronavirus pandemic, the Formula One teams and drivers were packing up to leave. The rapid spread of the virus left organizers with little choice Friday but to cancel the season-opening race, particularly after McLaren withdrew because a team member tested positive for the COVID-19 illness and following heavy criticism from six-time world champion Lewis Hamilton. The two practice sessions that usually showcase what the teams have been improving in the off-season were less than two hours from starting when the decision was publicly announced. Principals of nine F1 teams and organizers met overnight and “concluded with a majority view of the teams that the race should not go ahead," a joint statement by FIA, motorsport's governing body, local organizers and F1 said. “It's been a very fluid situation," F1 chairman Chase Carey said. “We're all disappointed not to have it, but I think we've made the decision we had to make." “It's not like it came out of the blue," Carey told a news conference beside the F1 paddock that ended in light rain. “A week ago, when teams started traveling here, we felt it was the right decision (to stage the race). Clearly the situation changed in the interim." Practice, qualifying and Sunday's race were all scrapped, casting doubt over the Bahrain Grand Prix which is scheduled to be held next week and the Vietnamese GP, scheduled for April 5. Authorities in Bahrain have already said no fans will be allowed into the circuit. Carey said a decision on whether or not to go ahead with the the race would be made in coming days. The Chinese GP has already been postponed from April. Hamilton used the first official news conference with F1 drivers in Melbourne to say he was shocked that organizers planned to proceed with the Australian Grand Prix, which regularly attracts more than 300,000 people over four days. McLaren's decision to withdraw was ultimately the catalyst for the cancellation. That person and 14 other McLaren team members have been placed in quarantine in a Melbourne hotel for 14 days. Hamilton's Mercedes-AMG Petronas team said it sent a letter to the FIA and F1 requesting the cancellation and had commenced preparations to leave before the decision was publicly announced.

Mercedes-Benz says no to price premium on S550 PHEV

The good news? Mercedes-Benz won't be charging any extra for the plug-in hybrid version of the S550 sedan compared to the gas-powered version. The bad news? The gas-powered version is really expensive. The S550 Plug-in Hybrid's pricing will start at a tidy $95,325, the same as the conventional S550, according to Cars Direct. For that price, buyers get a car that delivers 436 horsepower and 479 pound-feet of torque while having the ability to go as far as 18 miles on electric power alone, assuming that the driver in question isn't trying to use all 436 horses. But just in case he or she is, the car can also go from 0 to 60 miles per hour in about five seconds. There's been no word on a fuel-economy rating from the US Environmental Protection Agency (EPA) but the sedan gets 84 miles per gallon on the more lenient European driving cycle. It's unlikely to anywhere close to that stateside, but some folks still might feel they got their money's worth (ha ha) by adding a plug. The S550 Plug-in Hybrid goes on sale in California later this month. The model was first unveiled at the Frankfurt Auto Show in 2013 and shown off at the Los Angeles Auto Show late last year. Related Video: Featured Gallery 2015 Mercedes-Benz S550 PHEV: LA 2014 View 13 Photos News Source: Cars Direct via Green Car ReportsImage Credit: Drew Phillips Green Mercedes-Benz Hybrid PHEV